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3 Strategies to Help Maximize Profit Margins

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Regardless of industry, salespeople know that profit margins are important. Unfortunately, mortgage lenders are currently faced with increasingly narrow margins. After a banner year in 2020, the margins for real estate loans are feeling the squeeze. For many, this may seem like a daunting obstacle. However, CardTapp members have several tools that can help mange narrowing profit margins. Not only can the platform help keep cost per deal low, but it can also bring in more business for more revenue.

Increasing Revenue to Improve Profit Margins

The first way to leverage CardTapp for more revenue is through asking for and encouraging referrals. Once a referral enters the pipeline, monitor the activity, and be ready to close the sale. To make it easy for others to refer clients, make sure to:

  • Show business partners and others how to refer through your app
  • Include a lot of value for the shared client or friend to use
  • Add a button to easily access your reviews

In order to make your app as valuable as possible, keep it updated with fresh content. Because the app is customizable, it’s easy to add new and timely resources. This is especially helpful when engaging a new market segment could improve revenue. For example, although primary home loans may be slowing for mortgage lenders, other opportunities might arise. If lenders have products for second homes, Home Equity Conversion Mortgages, or Jumbo loans, they can easily add resources for those groups. Indeed, the ability to be flexible makes it easy to shift strategies to more profitable groups.

Controlling Costs

Though CardTapp can’t make a significant impact on large expenses like payroll and rent, it can help reduce some of the minor expenses. Things as simple as printing costs can add up. Using the CardTapp app as a digital engagement tool allows clients to access anything they need in the app. If documents and forms are in the app, that means less expense for paper and toner as well as less time spent at the printer.

Additionally, strategically using CardTapp can reduce a great deal of opportunity costs. Indeed, time is often one of a salesperson’s most valuable resources. Less time spent answering client questions, running calculations, or manually entering referrals into a CRM system, means more time building the pipeline and closing deals.

Optimizing Expenses

Cutting costs isn’t always the right strategy. Sometimes, salespeople just need to get more value out of what they’re paying for. Not only can a CRM integration help salespeople save time, it gives them better data. The better data can then lead to more focused and effective marketing initiatives. Additionally, pairing this improved data with effective outreach strategies like SMS marketing can help marketing dollars bring in a lot of return.

Instead of spending time and money on ads, emails, or direct mail that a client never sees, text messages are nearly all read by recipients within less than 10 minutes. Text message marketing also gives salespeople a great opportunities to engage with clients. More engagement and the fast turnaround time that texting provides helps salespeople retain clients through high levels of customer satisfaction. High client satisfaction also paves the way for more referrals.

Maximizing Profit Margins

Ultimately, we want the CardTapp platform to add as much value to members’ businesses as possible. For more on how salespeople can get the best return from the platform, check out how to maximize your return with:

  • Proactive Service
  • Custom Content
  • Strategic Partnerships
  • Text Messaging Strategy

Focusing on leveraging your existing tools to help increase revenue and decrease costs can help keep profit margins comfortable. Need help getting started with these strategies? Contact us today!

Photo by Pixabay from Pexels

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